Engie and Meridiam, two French companies, have reached an agreement with Actis to acquire BTE Renewables, a South Africa-based company that develops renewable energy, for $1 billion. Actis developed the renewables platform in 2017 after acquiring the Kipeto wind project in Kenya during its development stage. In 2019, it expanded the platform with the purchase of BioTherm Energy, a South Africa-focused company, and rebranded it as BTE Renewables. BTE intends to build utility-scale solar and wind facilities across the African continent. The company has six operational projects totaling almost 500 MW, five in South Africa and one in Kenya.
Following completion in the fourth quarter of 2023, the Kenyan assets will be transferred from Engie to Meridiam. With BTE’s acquisition, Engie will benefit from an additional 340 MW net of renewable operating assets in South Africa. These include 190 MW of solar power and 150 MW of wind power. Along with a workforce of 80 professionals, the acquisition comprises a portfolio of more than 3 GW advanced development projects and pipelines. Approval is awaited. Meridiam will acquire two wind farms: the 100MW Kipeto project and the 50MW Siruai wind farm with storage under development. Kipeto has been operational since July 2021 and is located 70km south of Nairobi.
In January 2023, Engie purchased a 1.25 GW utility-scale solar and storage portfolio from Revolve Renewable Power, a Canadian startup. Through a share purchase agreement, Engie IR Holdings, a subsidiary of Engie, carried out the transaction. The solar and storage projects Bouse, with a 1 GW capacity, and Parker, with a 250 MW capacity, make up the acquired portfolio. Both projects are in Arizona’s La Paz County. The Bouse project, which spans 6,155 acres, has the ability to produce enough electricity to power approximately 1.2 million homes.
REGlobal’s Views: Renewable energy platforms with large portfolios continue to fetch good value in the market as investors and developers focus on quickly expanding their renewable energy capacities. Moreover, South Africa is one of the leading investment hotspots in Africa with its enabling policies and significant untapped solar and wind power resources. Actis previously sold its African renewable energy platform Lekela Power, and this recent sale of BTE Renewables is consistent with Actis’ strategy to develop and sell assets.
